Non eu national with Permanent Residence card (valid untill 2029 ) applying Settled Status ,

Hi everyone ,
Here is my brief immigration history :
( 1) 2013 : I was only EU national and my non EU wife and child joined me with EEA family member permit
and they got EEA residence permit sticker on non EU Passport valid for five years .

(2) 2014 : I received DCPR (bLUE card)
(3) 2016 : I became naturalised British Citizen
(4) 2019 : Wife and child received Permanet Residence Card (Biometric card valid until 2029 ) through
Lounes Case .
I am EU/UK national so I can not apply settled status only my family members are going to apply . please advise me if anyone has appllied settled status with similar circumstances . I read in forum that Lounes case applicants go through paper application but not sure this applies to Permanent Rsidence Card obtained through LOUNES case . Do my wife and child still need sponser for settled status even they already have Permanent Residence Card ? Thank you .

As they hold PR already, why don't they simply apply for British citizenship??

Thank you for your reply CR001 , if she becomes Bc she has to give up current nationality because of her home country nationality law and want keep that nationality but we may apply for childs Bc . Thanks .